US Treasury Burns $90 Billion In Cash In Under Two Weeks

Now granted this is mostly due to paying off maturing Bills, which Geithner can't roll due to the debt ceiling being breached. But keep in mind that as we pointed out in T-Minus Two Months Until The $500 Billion Rolling Debt Ticking Timebomb Goes Off that there is nearly $500 billion in maturing short and long-term debt in the next month and a half which there will be no money to fund unless a debt ceiling decision is reached, but not by August 2, but July 22... or a week from today. And with Boehner refusing the Camp David dance invitation today, one can see why for the first time this afternoon we saw a coordinated sell off in bonds and stocks as the market is finally asking "what if..."

Would GOOGLE's CEO be wise to offshore more jobs to India, which has lower wages, but an english speaking and technically proficient labor force, especially in the IT sector?

What would John Maynard Keynes have said about this possibility, its consequences to both the U.S. and India, and to tax revenues and government expenditures?

Finally, which locale would Keynesianism hold out as the ideal place, given comparative advantages, to build a massive, 5 million square foot shovel factory, to equip the Keynesian Model worker of the future, for his/her shovel ready job?

There is nothing wrong with being rich - it's HOW you got rich (by stealing, or did you get rich honestly) - and some of the richest people in the world are still up to their eyeballs in debt - remember when Donald Trump filed for bankruptcy a few years ago?

I would however like to have someone who is rich and is Howard Beale mad over repeal of the Bush tax cuts to submit to an analysis of what they pay in taxes as compared to an analysis of the cost of the government services they use.

It's a little hard to define what I mean, but I'm cynical enough to suggest that the madder you are, the more you are hiding. Besides, surely the rich (and I really mean business owners and their employees/staff/families) do things like fly more than average, so the cost of TSA and even airports should be considered. The rich travel overseas so the cost of protecting them, they own larger properties, drive more and live farther away so the cost of extended infrastructure should be factored in. I know there are other taxes that offset some of this, but on balance it would just be interesting to see the big picture and how it all is really distributed because figures don't lie but liars figure and the truth doesn't matter as much as perception and finding the proper spin to promote your cause.

For our losses the exchequer is too poor; for th' effusion of our blood, the muster of its kingdom too faint a number; and for our disgrace, even Obama kneeling at our feet but a weak and worthless satisfaction.

If I had 90 Billion, there is no way I can spend all that in two weeks. Hell I might just use most of it to keep my county solvent and take care of the people in my area. They would spend it better than I ever can.

With that said, I might indulge in a small jet and learn how to fly it.

You know if you told investors at the top of the last bubble that corporations like Lulu, Netflix, Autozone, Chipotle, and Priceline would be trading at the levels they are now, they would have said you were insane.

Can you imagine in 2007 saying, "Hey I think Priceline is a $500 stock."

Ever see the movie Fail Safe? I think a couple guys want to drop the bomb just to see what will happen. This market has inflated to a 100 Megaton warhead aimed straight at the heart of America.

You know if you told investors at the top of the last bubble that corporations like Lulu, Netflix, Autozone, Chipotle, and Priceline would be trading at the levels they are now, they would have said you were insane.

Can you imagine in 2007 saying, "Hey I think Priceline is a $500 stock."

Ever see the movie Fail Safe? I think a couple guys want to drop the bomb just to see what will happen. This market has inflated to a 100 Megaton warhead aimed straight at the heart of America.

You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now. OK. Here goes. Write them down -- no handouts here!:

We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over -- and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come.

Thanks, but I had read that one when it first came out, where Tyler first referenced July 22, and I have still not been able to figure out that date.

There is no legal reason that legislation takes 10 days to become effective. I've researched, and congress and the president can move a bill into law in exactly zero days, if they so choose. I talked with a constitutional attorney friend of mine who confirmed that if they pass the legislation on Aug. 2, and the Pres. signs it into law on Aug. 2, it will raise the debt ceiling on Aug. 2. There is no inherent lead-time required.

So, I'm still left wondering why, other than that traditional legislation takes 10 days or so to become effective, that July 22 would be any kind of real deadline...

i misunderstood sherlock, B. now he is telling me he said, "follow the clues and remain clueless."

the which he now adds, "...like the rest of us."

who the hell can understand tyler? the implication seems to be that by 7.22 the maturing debt will not be rollable b/c of the debt ceiling. not sure why. or some other reason, like Treasury not able to stick to aug 2 budget, cash burn shows tham auguring in next week, 7.22.

i prefer door #2, since i've been braiwashed to think that aug 2 included the ability to re-fund maturing debt, till then.

Ah, but grasshopper, you forget those treasuries in the SS "lock box" just waiting to be monitarized to serve the god of government cash flow. Reputedly, 2.6T$, enough to "fund" the ponzi for another year-but it might cost the dems at the polls-for perhaps the bonds are already gone like the gold at fort knox? After all, they've been running the government with the federal employees trust fund for the last two months-just switch to SS to get through the next election cycle. Why not go whole hog? Really eat the seed corn, so to speak.

By next week they have to raise it, no wonder Obama and others are in a fast panic. August 2 is a few weeks away, but the July 22 is the one breathing down their necks and that is alot of money to roll over. You can't take money out of federal pension funds to roll that amount of money, no way. This isn't theater in a sense that both sides are just playing, they are trying to go all the way to the line August 1st to see who will blink. And they don't believe the August 2 date at all.

The real bang will be how quickly the money will fly out of the treasury. Any trivial increase in the debt ceiling will be spent in the blink of an eye like a crack addict who finds a $20 bill. So, the increase needs to be substantial in order to kick the can into 2012. That won't go over so well given how entrenched the criminals, err politicians, have made themselves over this issue. My guess is they create just enough room to make it to late 1Q2012 or early 2Q.